Sunburn Sunscreen has zero coupon bond issue outstanding with a $25,000 face value that matures in one year. The current market value of the firm's assets is $27,200. The standard deviation of the return on the firm's assets is 35 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously.

Based on the Black-Scholes model, what is the market value of the firm's equity and debt?